SkyWater Technology (SKYT) Stock Valuation After Fab 25 Deal And US$1b Infineon Supply Agreement
SkyWater Technology (SKYT) Stock Valuation After Fab 25 Deal And US$1b Infineon Supply Agreement
Publish Date: 2026-06-15 01:20:00
Source Domain: simplywall.st
SkyWater Technology (SKYT) is back in focus after agreeing to buy the Fab 25 facility, supported by a long term US$1b supply agreement with Infineon, which increases its domestic 200mm foundry capacity.
See our latest analysis for SkyWater Technology.
The recent Fab 25 deal and supply agreement arrive after a sharp run in the stock, with a 90 day share price return of 31.41% and a year to date share price return of 63.22%. The 1 year total shareholder return of 347.01% points to very strong momentum that investors are now weighing against expectations for future execution and risk.
If you are looking at SkyWater and wondering what else is moving around the chip supply chain theme, it could be worth scanning 48 AI infrastructure stocks
With the stock now trading slightly above recent analyst targets and supported by very strong one-year momentum, the key question is simple: is SkyWater still undervalued, or is the market already pricing in the next leg of growth?
Most Popular Narrative: 5% Overvalued
Analysts see fair value at $35, just below the last close at $36.61, which puts the current price slightly ahead of their core narrative.
The recent acquisition of Fab 25, backed by a multi-year $1b supply agreement with Infineon, quadruples domestic 200mm foundry capacity and creates a platform to address rising customer demand for secure, U.S. based chip supply, an opportunity amplified by ongoing government and private sector shifts prioritizing supply chain resilience. This is likely to drive top line revenue growth and increase revenue visibility.
Read the complete narrative.
Want to see what kind of revenue path, margin profile, and valuation multiple analysts plug in to reach that $35 figure? The key moves in this narrative hinge on slower growth assumptions, much slimmer profitability, and a future earnings multiple that sits far above typical semiconductor peers, all working together to justify today’s fair value.
Result: Fair Value of $35 (OVERVALUED)
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